The purpose of an IRA is to create future, guaranteed income in retirement. Investing your IRA assets into an income annuity creates the most guaranteed lifetime income, WITHOUT PRINCIPAL RISK.
IRA assets are being transferred from risky equities to guaranteed income annuities, in record numbers. These annuities are contracts that guarantee the principal will never be lost in down markets and they guarantee income that is payable for life.
Most of the people we speak with are more interested in being invested in the right strategy that guarantees maximum future income without risking principal. Billions of dollars every year are being moved out of brokerage firms and into annuity contracts because a diversified portfolio of equities leaves your retirement assets exposed to risk. As a result, these brokerage and wealth management firms respond with aggressive campaigns designed to discredit annuities. One brokerage firm, Ken Fisher, rails against annuities as their main marketing campaign.
Income Annuities Are Right For IRA Assets.
You are required to take annual distributions from your IRA at age 72. These income payments are pre-determined by IRS guidelines, known as Required Minimum Distributions, and the IRS does not require that your distributions must be payable for life. That responsibility falls on the IRA owner. Even though most people WANT guaranteed lifetime income from their IRA, most are not invested for that outcome. Most people have their IRA assets invested in a high percentage of equities.
A simple comparison tells the story.
Assume that two 65 year olds have identical IRAs, currently worth $500,000. The primary goal at retirement is to provide guaranteed income for life. At 72, they must begin taking income payments (RMDs). The two IRAs are identical except for how the $500,000 is invested in each.
Traditional IRA #1 is invested in diversified securities.
IRA #2 is invested in a guaranteed, income annuity that will pay income FOR LIFE. It can NEVER LOSE PRINCIPAL and the INCOME is contractually guaranteed. It will share in market gains when the markets are up.
ANNUITY + IRA = PEANUT BUTTER & CHOCOLATE
The IRA with the income annuity is better because it provides the HIGHEST GUARANTEED PAYMENTS FOR LIFE, without assuming any risk. The IRA with diversified securities can lose principal at any time. Losses are devastating in retirement considering that there is no future income to offset them.
If you agree that important goals in retirement are to preserve principal and make sure you don’t outlive your money, then Few things create guaranteed lifetime income like an annuity. Some critics say the tax deferred status of an annuity is wasted inside an IRA but this is not so. It is a classic red-herring argument designed to confuse people. The IRA’s primary objective is to create maximum retirement income for retirement and the indexed annuity does exactly that.
If you are unfamiliar with how these special annuities strengthen your IRA distributions, I offer a complimentary discussion to help give you a better understanding of these vehicles.
Economists and professors from Harvard, Wharton, Duke and Stanford all agree about the undisputed advantages and benefits of indexed annuities.
Says Michael Kitces, investment planning expert: “Given these changes, it is perhaps time to abolish the ‘annuities should never go into an IRA’ rule and recognize that it has become more a myth and remnant of old than proper advice in today’s environment.”
Annuitization involves converting your accumulated retirement assets into a series of periodic payments that last for a period of time of your choosing, in accordance with the provisions of the annuity contract.
Deferred Annuities are annuities that can be funded through a single premium or through flexible payments over time. Can potentially help you to accumulate money for retirement, especially over an extended period of time. Your money grows tax deferred, which means you pay no taxes on earnings until you withdraw your money.
Did you know that most fixed annuities have no fees? Over time, the absence of any fees is powerful.
Distribution Period is the period of time, either a specified number of years or lifetime, over which distribution payments are made to the annuitant. Earnings become taxable when the annuitant begins to receive payments. The payout during the distribution period can either be fixed or variable.
Fixed Annuities are annuities that guarantees you a specified rate of interest for a specified amount of time. Offers preservation of your assets and protection from market volatility. There are many types of fixed annuities with varying degrees of complexity.
Flexible Premium Annuities are funded over a period of time, generally years. Allows you to pay premiums of differing amounts (within a stated minimum and maximum) on a set schedule or randomly. Your assets accumulate on a tax-deferred basis and can fund either fixed or variable deferred annuities.
Immediate Annuities These begin payments for life or for a specified amount of time in exchange for your one-time contribution. Regular payments can be received on a monthly, quarterly, semiannual or annual basis. A portion of each payment represents taxable interest, and the other portion is a tax-free return of your principal. These can be great for retirement planning purposes, when maximum income is important.
Premature/Early Withdrawals (Distributions): Withdrawals are reported as income and are subject to ordinary income tax treatment (as opposed to capital gains or dividend income), and if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. In addition, company imposed surrender charges may apply to certain withdrawals.
Single Premium Annuities: They provide a way to turn a large sum of cash into guaranteed income. For those who have cash from an inheritance, legal settlement, business sale, etc., can fund an immediate or a deferred annuity. For those nearing retirement, who have assets accumulated in a retirement plan or other savings vehicle, can fund an immediate or a deferred annuity.
Return of Premium Rider: guarantees AT LEAST 100% of what you paid in premium whenever you surrender. For many people, their only concern about making an annuity purchase is the penalty for early surrender. Not all insurance companies offer this valuable feature and most annuity salespeople don’t offer it because they are paid less and commission is vulnerable for several years.
Systematic Withdrawals: allow you to withdraw money from the accumulated value of your contract on a regular schedule – making it an effective way to supplement income either before or after retirement. Systematic withdrawals are also flexible.
Variable Annuities: offer opportunity for asset growth through a variety of investment choices tied to market performance. With their greater opportunity for growth, comes greater risk. Variable annuities are subject to loss of principal.
Withdrawal Charges, Surrender Charges, Surrender Penalties: are charges that typically decreases annually until they reach zero.
Fixed Indexed Annuity With Income Rider: creates guaranteed income for life. The income level grows until you activate the rider and begin taking lifetime income. There are contracts with inflation riders and long term care riders that increase the income payments.
More annuity terms, definitions and frequently asked questions:
A
Account value
The amount of money in an annuity, working for the owner, before possible surrender charges.
Accumulation phase
The time frame during which the account value has the potential to grow. Also known as growth phase or growth period.
Advisor
A qualified person who can help annuity buyers understand their options and make financial decisions pertaining to their financial goals and objectives.
A person who will receive the income payments from an annuity. (They could be the direct owner of the annuity or another person chosen by the direct owner, and they are the person whose lifetime income the payments are based on).
Annuitize
When the annuity leaves the accumulation phase, turning the current account balance into a series of periodic income payments, either for a set period of time or for life.
Annuity
A financial product that offers guaranteed lifetime income with the potential of growing the principal.
Risk Appetite
The level of market risk that is acceptable to annuity owners. Risk comfort level, Risk tolerance, Degree of certainty, Risk appropriateness, Investor confidence.
B.
Beneficiary
The person designated to receive any remaining account balance or income payments once the owner is deceased.
Benefit
A feature that can provide added value or protection to the policyholder and/or beneficiaries, sometimes at an additional cost. Optional benefit, Rider, Waiver
Benefit to heirs
The balance that is paid to a beneficiary, typically the remaining account balance or income upon the annuitant’s death. Beneficiary benefit, Death benefit, Legacy benefit, Legacy, Legacy protection benefit, Family protection
Annuities have decreasing surrender charges that are usually gone in 7-10 years. The purpose of surrender charges is to allow the insurance company to invest in longer term assets, creating better yields for policyholders.
C
Cap
The maximum interest credited to an annuity at the end of a selected time period. The annuity owner will choose the time period that’s best from available options.
Charge
The amounts deducted from the contract, which may include setting up the annuity, adding optional benefits, etc.
Simpler term: Fee or Cost
Contribution
The payment paid into a contract. For most annuities, this is the paid in money.
Simpler term: Premium, purchase payments
Co-owner or Joint income option
An optional benefit that offers guaranteed withdrawals for life for both you and a loved one.
Related terms: Joint option, Spousal option, Income for two, Joint guaranteed lifetime withdrawal benefit, Joint protected lifetime withdrawal benefit
Commission
The amount of compensation paid by insurance companies for the sale of annuity products. The compensation is paid by the insurance companies, from its balance sheets, not the assets of the policyholders.
Contract value, account value or account balance
The amount of money working in the annuity.
D
Death benefit
A benefit paid to beneficiaries, typically the remaining account balance or income upon death. Legacy benefit, benefit to heirs, legacy protection benefits, family protection
Decumulation
The point you when an annuity ends the accumulation phase and begins to make income payments. Spending phase, income or distribution phase.
Deferral bonus
A bonus amount that may be added to an annuity for each year income is deferred. Typically, this bonus is added each year, up to a certain age.
Deferred annuity
A type of annuity that delays payments until the policy owner chooses to receive them, while providing an opportunity for growth during the deferral period.
Distribution phase
The point when an annuity begins paying income from an annuity.
Diversification
Strategically spreading the account value among different types of investments to help reduce the impact of market downturns. Diversification does not guarantee a profit or protection against a loss.
E
Earnings sensitive adjustment
Additional income received on top of the guaranteed amount, or in addition to any other income increase. This additional income is based on the market performance rate, and allows for additional earnings of otherwise permissible withdrawals. AKA bonus income increase.
F
Family protection
A benefit that pays the beneficiary the remaining account balance or income upon death. Consumer friendly terms are beneficiary benefit, legacy benefit
Fee
The amounts associated with owning an annuity, which may include setting up the annuity, adding optional benefits, etc. Fees can be embedded in the annuity contract or in addition to the premium.
Fiduciary
A qualified financial professional who is required to help consumers make financial decisions in their best interest. (A fiduciary is not the only type of financial professional required to make financial decisions in the best interest of their clients. All professionals should comply with best-interest requirements, as a matter of good practice.)
Financial advisor
A qualified person to help consumers understand their options and make financial decisions to work toward their financial goals. Consumer friendly terms include financial professional, advisor, financial consultant.
Financial consultant
A qualified person who does not earn commissions by helping consumers understand their options and make financial decisions to work toward their financial goals.
Fixed account
An account that earns a guaranteed interest rate and is not invested in or tied to the market.
Fixed annuity
A type of annuity that delivers 100% protection from market downturns with potential for earned interest. Many fixed annuities provide the benefit of a guaranteed interest rate, in addition to downside protection and the potential for earned interest.
Fixed indexed annuity
An annuity that guarantees principal protection from market downturns with the potential for growth tied to a market index by guaranteeing no principal loss and limited returns.
G
Growth period
The period when annuity principal has the potential to grow. (Some annuities allow for additional contributions over time.) More consumer friendly terms include growth stage and accumulation phase.
Guaranteed lifetime income
The payments from an annuity that are payable for life. Unused principal is paid to the contract beneficiaries in most types of annuities.
I
Immediate annuity
An annuity that begins paying out guaranteed income within one year of the purchase date, either for life or for a selected time period. The payments consist of interest and mortality credits.
Income stage
The point when the annuity owner begins receiving income from the annuity. Related terms: Distribution phase, decumulation phase, spending phase
Index participation rate
For some indexed annuities, when the underlying index value increases, the contract is credited with a portion of that increase based on the participation rate. For example, if the market went up 10% and the annuity’s participation rate was 80%, the annuity would be credited with an 8% return, or 80% of the gain. Participation rates are typically not guaranteed. They are subject to increase or decrease, in most contracts.
J
Joint option or guaranteed lifetime withdrawal benefit
An optional benefit that offers guaranteed income withdrawals for life, for two people, usually for spouses. More consumer friendly terms include joint income option, spousal option, joint lifetime withdrawal benefit.
L
Legacy
A benefit that pays the contract beneficiary the remaining account balance, a predetermined level defined in the contract, or income upon death. Other consumer friendly terms are beneficiary benefits, death benefit, legacy benefit, legacy protection benefit and family benefits.
Liquidity risk
The risk that annuity principal may need to be accessed sooner than anticipated, which could result in penalties or impact performance.
Living benefits
Optional benefits available for an additional cost that can offer guarantees, such as a minimum level of income for life or guaranteed income benefits.
Longevity risk
The chance of outliving one’s wealth and not having enough money to live.
M
Market risk
Like most investments, this is the chance of losing money due to unforeseen market downturns.
Market value adjustment
Allows for permanent increases to be withdrawn from the income base when the account balance, or total amount of money in the annuity, exceeds a certain level. This may occur on an annual or daily basis, depending on the annuity.
Related terms: Market value increase, permanent income base increase
Market value increase
Allows for a permanent increase from the annuity income base when the account balance, or total amount of money in the annuity, exceeds a certain level. This may occur on an annual or daily basis, depending on the annuity.
Market volatility
Rate at which markets change price. The way stocks, bonds and other market investments change in value. This market movement may affect the value of an annuity or other investments. Some annuities protect against volatility even when the markets go down.
P
Payment/Payout
Amount of income paid from an annuity with a set frequency.
Simpler term: Income payments, contract payout
Period certain
A payout option that allows annuity owners to choose when and how long to receive payments, including beneficiaries.
Premium
For most annuity types, this is the money paid into the annuity.
Price
The amounts associated with owning an annuity, which may include setting up the annuity, adding optional benefits, etc.
Product
They type of annuity used to pursue specific goals.
R
Rider
A feature that can provide additional benefits or protection to the contract for the owner or their beneficiaries, often at an additional cost.
Risk tolerance
The level of market risk that is acceptable for each annuity owner.
S
Solution
The strategy that is used to pursue specific financial goals.
Simpler terms: Strategy, vehicle or product
Spending phase
The point when the annuity starts making distributions, the decumulation phase
Spousal continuation
An option to transfer ownership or continuation of the guaranteed income to a spouse upon death.
Spousal option
An optional benefit that offers guaranteed withdrawals for life for a spouse. The joint income option
Sub-accounts
The underlying investment choices available in a variable annuity. These typically include stock, bond and money market funds. The annuity investment options.
Surrender Charge
A penalty that is paid to withdraw a certain amount of money from an annuity before the end of a set time period. For example, the annuity may allow for a withdraw up to 10% of the income base within a period of time. If a withdrawal of more than 10% is taken during this time, there will be a fee imposed.
Simpler term: Early withdrawal fee, surrender charge, withdrawal penalty
V
Variable annuity
A financial product that offers the potential to grow money through various market investment options and that can provide income during retirement. Some variable annuities offer optional benefits, available at an additional annual cost, that can protect the lifetime income from market downturns.
Please contact me at 561-869-4500 or complete the contact form on this page to schedule a complementary discussion. Or visit me on: https://www.advisorycloud.com/profile/Ted-Bernstein
Annuity glossary, annuity terms, annuity definition, best annuity
Whether you’re in retirement or getting ready to retire, here are 10 useful retirement tips and terms.
Protect Your Nest Egg:
Full Retirement Age: Full Retirement Age (FRA) is the age you can receive 100 percent of your Social Security benefit. If you delay, the benefits will increase by 8 percent, up to 70.
Spousal Benefits: Another strategy that may help maximize your Social Security income is the spousal benefit. The spousal benefit is an option to receive your own benefit or one-half of your spouse’s benefit, whichever is greater.
Lifetime Income: A term used to describe income for life. Social Security, pensions and annuities all provide lifetime income.
Retirement Asset Diversification: Similar to portfolio diversification, you may benefit from having different types of assets. One of the most important retirement tips to consider is working with a retirement professional to stay properly diversified.
Required Minimum Distributions: Mandatory IRS distributions to begin taking withdrawals from your retirement accounts, such as IRAs and 401k. They are taxable and they begin at 70½, regardless of whether you want them.
Re balancing: Re-balancing is a strategy to help keep your investments aligned with your time horizon and risk tolerance.
Part A – Hospital Coverage: If you qualify for medicare, you’ll pay no monthly premium for Part A coverage. However, you will have to meet the annual deductible before Medicare kicks in.
Part B – Non-Hospital Medical Coverage: Optional coverage for doctor’s visits, tests, physical therapy, etc. You may want to opt out if you continue health insurance through a qualifying employer, or spouse.
Part C – Medicare Advantage: An alternative to Parts A and B, it offers coverage through private insurance companies that contract with Medicare. May provide benefits such as vision or dental care at an additional cost.
Part D – Prescription Drug Coverage: Adds prescription drug coverage to Medicare. It is offered by insurance companies and other private companies approved by Medicare.
Donut Hole: A retirement term that describes the gap (or hole) in Medicare Part D, prescription coverage.
Long-Term Care Insurance: Coverage for people who need help with common daily living activities, such as bathing, eating and dressing.
Estate Planning: Preparing for retirement is a good time to review or create an estate plan. Updating living wills and powers of attorney is a good idea too.
Please contact me at 561-869-4500 or email me to discuss these retirement tips or a review of your current plan.
You can visit us at www.facebook.com/lifecycleplanners and www.linkedin.com/tedbernstein
Should you have a portion of your retirement assets in an indexed annuity? There is a great deal of information about how to allocate retirement assets. A fixed indexed annuity offers upside with virtually no downside.
If you want to create an income stream that is guaranteed for life, an indexed annuity may be the right tool.
If you want to protect your principal and receive a guarantee that you will NEVER lose it, you may want to consider an indexed annuity.
If you want market gains without market losses, a fixed indexed annuity will provide this “market insurance”.
Only an insurance company can guarantee 100% principal protection and income for life.
Americans concerned about security in retirement are buying more than $200B of indexed annuities. Watch the video below to learn about the advantages of using a fixed indexed annuity versus variable annuities that continue falling out of favor for retirement planning.
https://limra-1.wistia.com/medias/4yknawcnnn
Please contact me at 561-869-4500 or email me about a complementary consultation for indexed annuities and a review of your coverage.
You can visit us at www.facebook.com/lifecycleplanners
Surrender charges on fee-based variable annuities seem to be retreating faster than the polar ice caps, new filings reveal.
“These advisor-sold contracts typically have no surrender or a very short surrender (period) with very low penalties,” said Kevin Loffredi, senior product manager, annuity solutions, for Morningstar.
Surrender charges penalize an annuity contract holder for canceling the contract before a certain date. They also allow insurance companies to recoup their commissions paid upfront to advisors on the sale of a commission-based contract.
For annuity buyers, contracts with shorter or no surrender penalties is advantageous. In the past several months, there has been a rush of insurance companies introducing products with better surrender charge solutions. The challenge for them will be distribution.
Please contact me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about indexed annuities and your specific needs. You can visit us at www.facebook.com/lifecycleplanners
Using Fixed Indexed Annuities, insurance companies guarantee lifetime income for a critical part of your retirement plan. Annuities are not investments. Instead, they are contracts you enter with multi-billion dollar financial institutions that are regulated by 50 states. To maintain Triple A ratings, they are transparent to regulators and are considered to be extremely conservative.
Insurance companies have higher reserve requirements than banks.
Insurance companies must comply with strict investment guidelines.
The 30-year bull market in bonds may be over. The Fed has said it will continue to raise interest rates, which is not good for bond owners, especially open-ended mutual fund bond owners. Now is a great time to protect gains and protect retirement assets with a principal protected, lifetime income solution.
The right annuities, fixed indexed ones, can participate in the some upside of the markets, without any downside risk. This allows you to participate in potential stock market growth without the anxiety from the roller coaster of stock market losses.
There are contracts with 100% liquidity from day one – a full return of premium if you want out for any reason. These are special contracts not offered by everyone.
When stock market returns are negative, your annuity is credited at zero percent. When the markets are positive again, you will participate in a portion of the upside. This is a tremendous benefit during down years and bear markets.
Annuities provide higher income payouts as you get older. The longer you wait, the higher your guaranteed payout will be.
Annuities can provide guaranteed income for both spouses. The guaranteed income may continue for as long as the surviving spouse is alive. The life expectancy for two lives is much longer.
Some contracts DOUBLE the income payment for long term health care costs in the event you cannot perform two out of six Activities of Daily Living.
Upon the owner’s death, any unused principal will be transferred to the beneficiaries. The amount of money you contribute, plus all gains credited to your contract, will pass to your heirs.
Please contact me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about indexed annuities and your specific needs. You can visit us at www.facebook.com/lifecycleplanners
Watch out for these common retirement threats to your nest-egg.
Follow these risk proof retirement tips:
Longevity Risk: Considered by many to be the most dangerous of all retirement threats as life expectancy continues to increase. To mitigate longevity risk, you want to convert lump-sum retirement assets into guaranteed income streams for life. This retirement threat acts as a multiplier to all the other risks. Longevity risk is the risk of outliving your assets.
Insufficient Lifetime Income: A sustained period of near zero percent interest rates on safe investments and the evolution from government and corporate pensions to the privatization of retirement accounts has left many people without sufficient amounts of reliable income for life. Retirees today must reconsider what liquidity means in retirement. What percentage of your nest egg should be in lump investments versus guaranteed lifetime income you cannot outlive? What is the right percentage of each to ensure you don’t run out of gas and run the risk of outliving your assets?
Inflation: With interest rates at historic lows, inflation is a major retirement threat. Learning the secrets about the strategies to manage this “silent” threat is invaluable knowledge. Like un-managed high blood pressure, inflation causes damage that can go un-noticed for too long. Periods of low interest rates are often confused for periods of “no inflation”. Inflation is especially threatening to your nest egg due to limited options to replenish principle.
Incorrect Asset Allocation: The proper asset allocation in retirement is critical. Why do so many retirement aged people say a stock market correction or rising interest rates is keeping them awake at night? IT DOES NOT HAVE TO. Learn the right allocation strategies for a simpler retirement.
If you make one change today, increase the amount of guaranteed income from indexed, income annuities.
Rising Medical Costs: The retirement threat considered by many to be the one capable of immediate damage to a nest egg.
Loss of Spouse & Dementia– Both married couples and single retirees can expect to deal with the real issue of potential dementia in the aging process. For married couples, the loss of a spouse often compounds these challenges and has proven to be one of the most significant retirement threats, especially when one spouse has primary responsibility for overseeing the retirement plan. Leading economists and retirement scholars agree about the benefits of guaranteed income you cannot outlive.
Investment Scams: Be careful of “too good to be true” investments. I have very good radar for scams. Feel free to contact me for an opinion.
Fees: Fees and other charges are similar to taxes levied against your investments. They are disclosed, easy to measure and they add up.
4. Bad Advice: You know it when you see it. I meet with people in or near retirement every day whose number one objective is “no losses”. Yet, they’re retirement assets are invested in stocks and bonds. It never hurts to get another opinion and having a team of professionals with different disciplines is good prevention. Just make sure one of them is a retirement income specialist.
5. Market Losses: Right up there with longevity risk, market losses can be the most devastating retirement threat. You cannot afford losses in retirement. You don’t have income to replenish them and you don’t have the time needed to overcome them. A fixed income annuity keeps you invested with no losses, EVER.
This is just a partial list of retirement threats to your nest egg. The key to security in retirement is to make sure you are not vulnerable to any of these threats. With the right strategy, you can eliminate every risk to your nest egg that leads to peace of mind you may not currently enjoy.
Please call me at561-869-4500 or email me, Ted Bernstein, about a complementary consultation about your specific needs.
What is the difference between bonds in retirement and annuities?
The Wall Street Journal described income annuities as “super bonds”.
Within the backdrop of retirement planning, annuities are often compared to bonds and vice versa. They are different. It is important to know their differences in order to appreciate the superior qualities of an income annuity for retirement income purposes.
Shortcomings of Bonds:
• A bond or a bond portfolio cannot provide guaranteed income for life. • A bond or a bond portfolio does not guarantee results, of any kind. • Bonds and bond portfolios have default risk that bondholders accept without any kind of insurance (General Motors is a recent example of worthless bonds that offered investors no recourse). • Bonds are usually not redeemable early without an early withdrawal penalty.
The advantages of Fixed Indexed Annuities:
1. Guaranteed income you cannot outlive, no matter what; 2. No principal loss, ever; 3. Market upside when markets are up; and 4. 100% liquidity from day one. 5. Backed by insurance companies with strict reserving regulations and state guaranty funds.
Below are powerful conclusions from one of the leading retirement scholars in the world, Professor Wade Pfau. According to Professor Pfau:
“The funds used to buy a fixed deferred income annuity should be viewed as a substitute for a bond investment when evaluating a holistic retirement portfolio.”
“Our findings suggest that a short deferral income annuity can both reduce the cost of funding retirement and provide important behavioral benefits to clients concerned about near retirement market performance.”
“Managing assets to create income becomes a significant challenge for the increasing percentage of Americans who suffer from dementia in old age. A retiree can reduce all of these risks through the purchase today of a guaranteed income stream in the future…”
“A Deferred Income Annuity can also be beneficial as insurance to protect against the risk of outliving assets either due to poor investment performance or reduced cognitive ability in old age.”
Using the right income annuities will simplify retirement planning and provide guaranteed results.
Please call 561-869-4500 or email me, Ted Bernstein, to continue our discussions for your specific needs.
This retirement story in the New York Times, How to make your money last as long as you do, hit the bullseye by explaining how annuities provide guaranteed, lifetime income in retirement.
“Consider an annuity”… [Retirees] will always have enough to cover essential living expenses, no matter how long they live or how badly their investments perform.”
With a portion of your retirement funds in the right type of annuity, the principal is protected by creating guaranteed income that will last “as long as you do”. As you get older, the amount of income increases and will not level off until you begin to draw a paycheck from the contract.
In other words, anyone who wants absolute security in retirement should take advantage of this special kind of annuity.
No other retirement solution offers 100% principal protection, participation in market gains, tax deferral, favorable taxation on distribution, liquid from day one and no commissions paid by you or your account.
Consider an annuity if you are:
Married and in, or near retirement.
Want dependable, predictable income for life.
Single, in or near retirement.
Seeking a simple and safe solution built entirely on guarantees.
Interested in transparency, disclosure and regulated products.
Seeking guaranteed income for life with NO principal risk.
ROI in retirement is reliability of income.
With the New York Times suggesting that people “consider an annuity” to make their money last as long as they do is supportive of everything that is stressed by economists and professors all over the world. Guaranteed, lifetime income in retirement is finally beginning to receive mainstream attention.
